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Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $ 1 3 5 , 0 0 0 . The equipment was

Comparing three depreciation methods
Dexter Industries purchased packaging equipment on January 8 for $135,000. The equipment was expected to have a useful life of 3 years, or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1,8,100 hours in Year 2, and 8,100 hours in Year 3.
Required:
1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar.
Depreciation Expense
Year Straight-Line
Method Units-of-Activity
Method Double-Declining-
Balance Method
Year 1 $fill in the blank 1
43,200
$fill in the blank 2
$fill in the blank 3
Year 2 fill in the blank 4
43,200
fill in the blank 5
fill in the blank 6
Year 3 fill in the blank 7
43,200
fill in the blank 8
fill in the blank 9
Total $fill in the blank 10
129,600
$fill in the blank 11
$fill in the blank 12
2. What method yields the highest depreciation expense for Year 1?
3. What method yields the most depreciation over the 3-year life of the equipment?

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